Developing a Contextual Framework for Understanding the Use of a Commitment Device in a Philanthropic Business Model

In the past 100 years, the manner in which for-profit entities support social causes has evolved considerably. In the early 1900\u27s, many stockholders viewed efforts to operate in a socially responsible manner as contrary to the firm\u27s profit motives. Now, several states authorize a new legal structure for companies that place support for social causes at the core of their business strategy. The purpose of this paper is to review recent literature relating to social responsibility and outline the distinction between various forms of corporate engagement with social causes. The author presents a historical review of methods by which corporate support for a social cause has shifted and examines how businesses that choose to function in a socially responsible manner operate. This article makes a contribution to the area of social responsibility by providing an alternate framework that accounts for social consciousness of for-profit businesses and their use of a commitment device. The framework can be utilized by academics and practitioners seeking to delineate between for-profit enterprises that operate with a degree of social consciousness and those that do not. Finally, the author highlights recommendations for further research in the field of social responsibility